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Relief for lettings sector as mandatory mediation threat is lifted

The government has surprised observers by announcing that compulsory mediation over Covid-related arrears would happen in the commercial sector - but not the residential market.

Speculation in at least one national newspaper suggested the government would make mediation compulsory across both the residential and commercial sectors.

However, the Chief Secretary to the Treasury, Steve Barclay, has told MPs that the ban on commercial evictions - which had been set to end on June 30 - would be extended into March 2022.

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A new and binding arbitration mechanism would be introduced introduced to help commercial tenants and landlords resolve disputes over Covid-related arrears.

However, no mention was made of a similar mandatory arbitration to settle disputes between landlords and tenants in the residential sphere.

 

 

“We will introduce legislation in this parliament session to establish a backstop so that where commercial negotiations between tenants and landlords are not successful, they go into binding arbitration” Barclay told MPs.

“Until that legislation is on the statute book existent measures will stay in place, including extending the existing moratorium in place to protect tenants from eviction to March 2022.

“All tenants should start to pay rent again in accordance with the terms of their lease or as otherwise agreed with their landlord.”

The commercial sector eviction ban was introduced in April last year, originally until September 2020. It was then extended to the end of this month - and now expires on March 25 2022.

  • James B

    Unbelievable. This government are doing everything they can to keep the defaulters in the private sector and landlords housing them for free in some cases

    Matthew Payne

    Of course they are, they cant afford a tsnami of evictions as this plays out. Only the extreme cases will get possession, the breathing space, now this etc is designed to get us through the summer with the majority of tenants staying put. Then comes autumn/winter, wave 4 and the realisation that they need to revaccinate the whole population again with a variant booster as immunity anyway starts to erode, and we have another moritorium on all evictions. Any mainstream evictions wont start happening until the middle of 2022.

     
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    Fine take it to mediation, won’t resolve much as tenants will still default. Still be out on the street

  • icon

    Typical of this Left-wing government. Shame on them deceiving me into thinking I was voting for a Conservative government. Well, we got the CON portion at least.

  • jeremy clarke

    So, tenants who have had lots of gov support but still fail to pay their way will be given mediation which could take weeks to come to fruition during which time the debt rises. What makes gov think that tenants who haven't paid or engaged with landlords are suddenly going to start talking?

    James B

    I’m sure they know very well the outcome it’s all about stalling

     
  • icon

    Incompetent government. Bunch of nobel prize morons.

  • icon

    Are there any tenants or their friends / work colleagues who read this who can give a view?

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